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ICE is still negative. On NYMEX watch the 8-day M/A support

Published Monday, April 20th, 2015

ICE was negative on Friday morning whilst bulls seemed to be in control on the NYMEX contract nevertheless both contracts finished the day lower. ICE could not get down to its nearest support level so shorts are probably still short. NYMEX half-heartedly tested its resistance area before weakening but still closed above the daily short-term M/A supports. Further softening of the price, however, must be concerning for longs in this contract.

May ICE: We had and still have valid downside objectives on this contract. The fact that all the daily short-term M/As are acting as resistances and that the daily slow stochastics is negative suggests further pressure on supports. These supports are the 44.00 range, the daily continuation low on January 20 and 43.52, the daily contract low on March 23. Shorts are recommended to start covering their positions when the former is in sight and go flat when the latter is tested.

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Posted by Tamas Varga

Tamas Varga has been in the oil industry since 1992 and with PVM for 18 years. During his time in the industry he has gathered a range of experience in the oil markets. At PVM Tamas is in charge of data collection and analysis.